Major policies of the Kishida Cabinet 01/

A New Form of Capitalism

As we face structural changes and structural issues that can even be considered turning points between eras, we will accelerate our efforts to realize a New Form of Capitalism and aim at building an economy and society suited to the new era in order to further powerfully expand our current future-oriented trends, including wage increases and companies’ willingness to invest.

A New Form of Capitalism 01

Bringing about structural wage growth
Creating a large middle class

In order to make the first high-level wage increase in 30 years a sustained and structural development, we will strengthen our investment in human resources and advance a three-pronged set of labor market reforms, namely, providing support for workers to improve their skills through reskilling, introducing job-based pay in line with the actual situation of individual companies, and facilitating labor mobility into growth fields.
Alongside this, we will create a society where we raise household income by increasing income from financial assets and where we boost corporate productivity through the promotion of diverse work arrangements, leading to further increases in wages. We will foster a large middle class by working to dramatically strengthen our policies to counter the declining birthrate and our policies related to children.


A New Form of Capitalism 02

Invigorating domestic investment

A high degree of enthusiasm for investing has been cultivated, including domestic investment surpassing 100 trillion yen, the highest level since the bubble era. For fields that are at risk of underinvestment if left solely to the market, we will advance public-private cooperation and engage in targeted public spending as means of priming an expansion of private-sector investment. For 30 years, Japan has been in a downward spiral of a deflationary economy followed by a cost-cutting economy. We will break free from that and create an economy that grows through investments towards the future.
Towards that end, we will provide to domestic and foreign companies comprehensive support at scales and timeframes for which medium- to long-term predictability can be indicated. We will also consider assistance through tax system and budgetary means at a level that compares favorably internationally so that companies can conduct planning for large-scale business locations and investments. This assistance will be focused on the strategic fields of semiconductors, storage batteries, data centers, and biotechnology in particular. In addition, towards the end of the year we will formulate an investment support package that is competitive internationally.


A New Form of Capitalism 03

Transitioning to a digital society

We will use digital technology to aim at a society in which various forms of happiness can be achieved, with individuals able to choose services suited to their particular needs. We will also advance human-centered digital transformation that leaves no one behind.